AL HB261

Taxpayers who employ student workers under age 19 enrolled in school to work during school breaks, after school, weekends, summer, or official holidays are eligible for an income tax credit.

Student workers must be retained as employees for at least nine months; the credit equals wages paid up to a maximum of $2,500 per student worker per year.

The credit cannot exceed 50 percent of the taxpayer's annual tax liability reduced by other allowable credits, with unused portions carried forward for up to five succeeding years.

Credit eligibility is limited to businesses located in designated economic zones: 8A Businesses, Empowerment Zones, HUB Zones, I-65 Corridor, Renewal Communities, Tax Incremental Financial Zones, and Enterprise Zones.

The credit becomes effective January 1, 2013, for the 2013 taxable year and subsequent years.